James Hardie sees sales slip 5% in 1QFY23-24

James Hardie has posted global net sales of US$954.3m in the first quarter of FY23-24 (ended 30 June 2023), down five per cent from the US$1000.9m seen in the same period a year earlier. Adjusted EBITDA advanced 12 per cent YoY from US$248.9m in the 1QFY22-23 to US$279.1m in the same period a year later, while the adjusted EBITDA margin improved from 24.9 per cent to 29.2 per cent over the same timeframe. 

The North America fibre cement business saw net sales of US$694.8m in the 1QFY23-24, down six per cent YoY from US$740.1m in the 1QFY22-23. EBIT over the same period improved 13 per cent to US$217.6m, with the EBIT margin up 5.4 percentage points to 31.3 per cent. Average net sales prices grew by more than three per cent YoY in the 1QFY23-24, more than offsetting a decline in volumes. 

In the Asia Pacific fibre cement business, net sales expanded by five per cent YoY to US$209.7m, compared to US$200.1m in the same period a year earlier. EBIT over the same timeframe increased by 35 per cent YoY to US$69.5m. A 12 per cent YoY increase in the average net sales prices was partially offset by an eight per cent contraction in volumes, primarily in the company’s New Zealand business.

The Europe Building Products business reported net sales of EUR109.7m, down one per cent from the EUR110.8m recorded in the 1QFY22-23. EBIT in the opening quarter of 1QFY23-24 stood at EUR10.8m, a decline of five per cent YoY, while the EBIT margin declined by 0.5 percentage points to 9.8 per cent in the 1QFY23-24. The business saw an 18 per cent YoY fall in volumes over the quarter under review, driven by a slowdown in the housing markets in which the company operates.